Port Wings Maritime Exim Weekly 7 April 2021 e-Paper

For All Type of Marine & General Insurance

www.portwings.in

Apr. 7th - 13th, 2021 Issue

SANCO TRANS LTD

Also undertaking Life and Mediclaim Policies Contact:

K.Sivakumar,

M.Sc, B.L.,

Insurance Advisor

Off: Srinivasa Complex, No.72,/149, Linghi Street, Chennai - 600 001.

Ph: 044-25260381 Mob: 9444222056 E-mail: mugavaishiva@gmail.com

Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741

Wednesday, April 7, 2021

8 Pages

WTO Revises Upwards Its Projection For Global Trade Volume Growth In 2021 To 8% Chennai

P

Port Wings News Network ainting an optimistic picture for exporters, the World Trade Organisation has revised upwards its prediction for global merchandise trade volume growth in 2021 to 8 per cent compared to the 7.2 per cent growth forecast in October 2020, according to a report in Business Line.

to grow at 8 per cent.

Moreover, much of global import demand will be met by Asia, exports from which are expected to grow by 8.4 per cent in 2021, the report said.

Indian exporters have recently indicated that there has been a growth in enquiries and fresh orders from buyers in key Western markets although goods exports in fiscal year File Photo

“Trade growth should then slow to 4 per cent in 2022 and the effects of pandemic will continue to be felt as this pace of expansion would still leave trade below its pre-pandemic trend,” indicated the WTO’s most recent forecast on March 31.

Prospects for Indian exporters may even be brighter as North America, one of India’s top export markets, is projected to drive the growth in demand with an estimated 11.4 per cent increase in imports while demand in the EU, another big buyer of Indian goods, is likely

2020-21 is set to be about 8-10 per cent lower than last fiscal’s figure of $314 billion.

The report, however, cautioned that Covid-19 continues to pose the greatest threat to the outlook for trade, as new waves of infection could easily undermine any anticipated recovery.

The decline in volume of world goods trade for 2020, too, has been pared to 5.3 per cent compared to a 9.2 per cent fall projected earlier.

“The strong rebound in global trade since the middle of last year

has helped soften the blow of the pandemic for people, businesses, and economies,” WTO DirectorGeneral Ngozi Okonjo Iweala said.

“Keeping international markets open will be essential for economies to recover from this crisis and a rapid, global and equitable vaccine roll-out is a prerequisite for the strong and sustained recovery we all need,” she added.

The relatively positive short-term outlook for global trade is marred by regional disparities, continued weakness in services trade, and lagging vaccination timetables, particularly in poor countries, the report said.

World GDP at market exchange rates should increase by 5.1 per cent in 2021 and 3.8 per cent in 2022, after contracting by 3.8 per cent in 2020, the report pointed out.

Falling oil prices led to a 35 per cent contraction in trade in fuels in 2020 while travel services were down 63 per cent in 2020 and are not expected to fully recover until the pandemic wanes.

“Ramping up production of vaccines will allow businesses and schools to reopen more quickly and help economies get back on their feet. But as long as large numbers of people and countries are excluded from sufficient vaccine access, it will stifle growth, and risk reversing the health and economic recovery worldwide,” she said.

`12

Wing 7 Feather 34

New Delhi Port Wings News Network dani Ports and Special Economic Zone (APSEZ) on 5 April 2021 said it has acquired 25 per cent stake of Vishwa Samudra Holdings in Krishnapatnam Port for Rs 2,800 crore, according to a news report in Outlook India quoting news agency the Press Trust of India. This will result in APSEZ increasing its stake from 75 per cent to 100 per cent in Krishnapatnam Port.

Krishnapatnam Port, located on the east coast of India in Nellore district of Andhra Pradesh, is an allweather, deep water port has multi-cargo facility with a current capacity of 64 million tonne per annum (MTPA).

“APSEZ, the flagship transportation arm of the diversified Adani Group, is announcing the acquisition of the residual 25 per cent stake in Adani Krishnapatnam Port, (Krishnapatnam Port) for Rs 2,800 crore,” the company said in a statement.

With a waterfront of 20 km and 6,800 acres of land, Krishnapatnam Port has a master plan capacity of 300 MTPA and a 50-year concession, it said.

“Together with the 75 per cent ownership acquired in October 2020, the acquisition implies an enterprise value of Rs 13,675 crore implying an EV/ FY21 EBITDA multiple of 10.3x,” the company said.

The port is expected to have volumes of 38 MT, revenues of Rs 1,840 crore and EBITDA of Rs 1,325 crore in FY21, it said.

A

• India’s 1st fumigation company to be accredited with NSPM 12 Standards • Fumigation of wooden packing material as per ISPM 15 standards • Heat treatment for wooden packing material • AFAS accredited fumigation agency (Australian Quarantine) • Phyto Sanitary Certificate Arrangements • Container Fumigation • Ship holds Fumigation • Ware House Fumigation • Disinfestation of Vessels • All Type of Residential & Commercial Pest Control Services Registered Office: No.1, Buddu Street, 3rd Floor, P.B.No. 1846, Chennai - 600 001 For Booking: 4242 7777, 2521 3409, 2522 1241 | booking@fumi.in For PQ Arrangements: 2521 7488, 2224 2175 | pqfumigation@fumi.in For New Enquires: 2522 0626, 2522 5061, 2524 0672 | fumi@fumi.in

www.fumigationservice.com

37

Mob : 9884085285

Adani Ports Acquires Residual 25 pc Stake in Krishnapatnam Port For Rs 2,800 Cr

Experts in wooden pallet Fumigation and Heat Treatment

FUMIGATION SERVICES PVT LTD

Authorized Economic Operator

Branches: • Bangalore • Coimbatore • Cochin • Delhi • Guntur • Hyderabad • Kakinada • Mangalore • Mumbai • Tuticorin • Vizag • Mundra • Gandhidham • Salem • Krishnapatnam

Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said, “The consolidation of our ownership in Krishnapatnam Port reinforces APSEZ’’s stride towards 500 MMT by 2025 and achieving our broader strategy of cargo parity between west and east coasts of India.”

He said Krishnapatnam Port is on track to handle double the traffic by 2025 and will deliver high growth through a multi-product File Photo

and cargo enhancement strategy while enhancing return on capital employed.

“We are confident that we will be able to double throughput and triple EBITDA at Krishnapatnam Port by 2025. We are committed to making Krishnapatnam Port the gateway port for South Andhra Pradesh and Karnataka. With its large industrial land backed with the port we will transform Krishnapatnam into a manufacturing and industrial hub,” Adani added.

APSEZ is the largest port developer and operator in India with 12 strategically located ports and terminals — Mundra, Dahej, Tuna and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam and Krishnapatnam in Andhra Pradesh, Dighi in Maharashtra and and Kattupalli and Ennore (Chennai), Tamil Nadu.

These represent 24 per cent of the country’s total port capacity, handling vast amounts of cargo from both coastal areas and the vast hinterland. The company is also developing a transhipment port at Vizhinjam, Kerala.

Follow us in twitter @portwingsnews Visit

www.portwings.in for Latest News

Inside Dredging Corporation of India... Pg-2 Mandaviya Flags Off New Hazira... Pg-3 Paradip Port Handles “All Time... Pg-4 Overpowering COVID-19 and... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7 Indian Crew On Suez Ship; All... Pg-7 Maersk Suspends Spot Bookings... Pg-8

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2021-2023 Posted at Pathrika Channel, Egmore, RMS, Chennai-8. Date of Publication - Wednesday, Posted on Tuesday / Wednesday

Apr. 7th - 13th, 2021 Issue

2

Concern Over Likely Legal Action Against Ever Given Seafarers Chennai

Wednesday, April 7, 2021

B

Wing 7 Feather 34

A Black Swan Event

igger the ship is, larger the risk. The value of commodities transported by container is getting higher and higher, therefore in the event of accident, the loss of huge amount of cargo will be the lost for ship owner, cargo owner and insurance company.

The six-day blockage of the Suez Canal by a megaship named Ever Given came to an end on March 29 after salvage teams used dredging and tug boats to heave the vessel back into operation.

The capacity of a single vessel to block one of the world’s busiest shipping corridors, creating a traffic jam of hundreds of boats, has sparked a debate about the ever-growing size of megaships, with the Ever Given’s accident taken as evidence that they’ve simply become too large.

At 400 meters long, the Ever Given is indeed among the largest one percent of the world’s fleet. Its high-profile accident will result in a new wave of precautions to make megaships safer, but it will also prompt the shipping industry to reflect on whether such gigantic vessels actually do more harm than good.

Container ships have been increasing in size for decades in order to carry more containers on each voyage. According to analysis from Allianz, the number of 20foot containers that ships can carry has increased by 1,500 percent over the past 50 years.

One of the most significant size upgrades came when Maersk introduced its E-series in 2006, which can carry around 15,000 containers – doubling the capacity of the previous largest container ships.

In the 15 years since then, some 133 ships have been launched with a carrying capacity of between 18,000 and 24,000 containers. These are classed as ultra large container vessels – the biggest boats in the world. The Ever Given is one such vessel.

Megaships are particularly attractive for international shipping firms because they offer economies of scale: the larger the ship, the more efficient it is at transporting goods.

The Ever Given can carry 20,000 containers, while so-called very large containerships can carry a maximum of just 9,000 containers. Using just one vessel instead of two to carry the same load saves fuel, significantly reduces the cost of transportation per container, and reduces the ship’s environmental footprint.

When megaships were first introduced, there were doubts about whether they’d actually use their huge carrying capacity. But evidence suggests they do: the Ever Given was reportedly carrying more than 18,000 containers when it became wedged in the Suez Canal. Unfortunately, carrying this many containers also has its downsides.

Operating megaships in confined waterways has already been shown to be difficult. Stacking them high with containers doesn’t help: it can lead the vessels to catch the wind and become even harder to control, which may have played a role in the Ever Given’s grounding.

When caught in a storm on open seas, such ships may also be more prone to losing containers overboard. According to recent analysis, at least five of the largest class of container ship lost containers during this year’s winter storm season in the Pacific.

Infrastructure is also struggling to cope with these larger ships.

According to a 2015 report, ports, straits and canals require expansion to make way for the new class of megaships. The cost of such projects is immense: the expansion of the Panama Canal in 2016 to accommodate bigger ships ended up costing over $5 billion. In light of these infrastructural concerns, there may be an economic argument against expanding the number or size of megaships in our seas.

An investigation is ongoing into the cause of the Ever Given’s accident, which should tell us to what extent her size was responsible. Based on previous incidents, strong winds, malfunctioning machinery and even human error could equally be to blame.

If the Ever Given’s size was to blame for its accident, you’d expect other megaships, which have been transiting the Suez Canal for years, to have experienced similar difficulties. But a quick check of accident statistics shows that there are only two or three similar incidents involving megaships in the canal per year – out of 19,000 annual crossings.

In most cases, these are minor accidents causing little disruption, and they occur at such a low frequency that the Ever Given’s accident should not be interpreted as evidence that container ships have become too big.

But seeing as the consequences of the Ever Given’s accident were so severe, new maritime safety measures will rightly be put in place to avoid a similar incident happening inSample the future, such as ship design changes, better pilot training, the use of tug boats TEXT as canal escorts, autonomous guidance systems, and the widening of waterways.

Right now, the larger vessels dominate the Asia – Europe route given that these lanes have ports that are better equipped to handle them.

Regardless of new safety measures, the Ever Given’s accident may well come to be regarded as a “black swan” event: an unpredictable one-off, rather than a sign of things to come. At present, there’s little evidence to suggest that container ships have become too big, or that the downsides of such megaships should result in their being scrapped.

01

Contact Numbers Phone Number Name Designation 9444222056 K.Sivakumar Publisher cum Editor 9444158179 C.U.Satheesh Marketing, Circulation 9597684285/7358020375 Richard Collins Manager - Tuticorin Sample TEXT - Marketing 7305315408 Sathish Kumar Executive

04

E-mails: marketing@portwings.in / marketing1@portwings.in / editorial@portwings.in

All payments shall be made in favour of “Universal Media Associates” payable at Chennai by Cash / Cheque / NEFT Transfer.

Bank Name : HDFC BANK 1 Year `750 Branch : Parrys Corner, Chennai 600 001.

Account No. : 50200016324291 2 years `1400 IFSC Code : HDFC0000166 3 years `2000 PAN : AADFU8138N GST No. : 33AADFU8138N1ZQ Universal Media Associates Old No.72/ New No.149, 1st Floor, Srinivasa Complex, Linghi Street, Mannady, Chennai - 600 001.

SUBSCRIPTION

B

Port Wings News Network oth the Indian government and Indian seafarers’ organisations are concerned about the legal issues that the crew may face, including the possibility of criminal negligence charges.

According to sources in the shipping industry, one of the possibilities is that the Master and some of the crew may be restrained from travelling further, and could be placed under house arrest until the investigation is completed into the cause of the accident.

There have been no reports of pollution or cargo damage, and initial investigations rule out any mechanical or engine failure as a cause of the grounding.

Investigations suggest that the vessel ran to ground due to strong winds.

“There is a clear danger that the crew will be made scapegoats,” a senior person associated with the shipping industry is quoted by The Times of India as having said.

Captain Sanjay Parashar, member of India’s National Shipping Board

(NSB), said, “Firstly, it has to be ascertained as to how the giant ship ran aground. Facts can be checked by examining and listening to conversations in the ship voyage data recorder (equivalent to the ‘black box’ used in aircraft); one can then come to an understanding as to what caused the mishap.”

Bernhard Schulte Shipmanagement (BSM), which is responsible for the technical management of the vessel, made the following statement to the media: “On 23 March 2021, the container ship Ever Given ran aground while transiting northbound under pilotage through the Suez Canal en route to Rotterdam, Netherlands. Initial investigations suggest the vessel grounded due to strong wind.

“There have been no reports of pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding.

“All relevant authorities and parties were informed immediately, and tugs arranged by the canal authorities to re-float the ship.”

A spokesperson for BSM told Seatrade Maritime News, “As you know the, the Ever Given is currently in Great Bitter Lake undergoing inspection, and we hope to provide a fuller update on the condition of the vessel and her crew in due course.

“However, I can confirm that all 25 of the crew on board remain safe and well, and BSM is incredibly grateful for their professionalism and resilience as they have worked tirelessly alongside the experts from Smit Salvage and the Suez Canal Authority to restore navigability in the Suez Canal.”

Meanwhile, the National Union of Seafarers of India (NUSI), based in Mumbai, has expressed full solidarity with the sailors on board the Ever Given.

“The NUSI has promised solidarity with all Indian seafarers aboard the Ever Given,” said NUSI general secretary, Abdulgani Serang.

“I got in touch with them. The seafarers are fine, but stressed. They are not alone, and we will support them whenever required, and in whatever manner required.”

Dredging Corporation of India Celebrates 45th Formation Day Visakhapatnam Port Wings News Network redging Corporation of India Limited celebrated 45th Foundation Day at its Head Office at Visakhapatnam on 29 March.

The premier Dredging Company of the Nation was incorporated on this day 45 years back and since then it has been consistently catering to the dredging requirements of the major and minors ports across the country and abroad.

On this occasion, in his message to the employees of DCIL, Shri Mansukh Mandaviya the Hon’ble Minister of State for Ports, Shipping and Waterways expressed confidence that DCIL will soon emerge as a global giant in the field of green and sustainable dredging for Atma Nirbhar Bharat.

D

The celebrations were led by the MD and CEO, Prof Dr. G.Y.V Victor and attended by

the employees and their families.

Speaking on the occasion Prof Victor outlined the journey of DCI through the years and recollected the invaluable contributions made by its past Chairman and all other employees in this stupendous

journey spanning four decades.

He reposed his complete faith in the rich talent and high ethical standards of Team-DCI and expressed his confidence that DCIL will restore its selfreliance and glory sooner than later. The celebrations which coincided with Holi was marked by colourful programs organised by little children of the employees of DCIL. Capt K.M Choudhary gave a presentation on journey of DCI and other senior officers attended the celebrations.

MoRTH Achieves Record-Breaking Milestone Of Constructing 37 Kilometres Per Day New Delhi Port Wings News Network remendous progress has been achieved in building of National Highways across the country in the last few years by the Ministry of Road Transport and Highways. The Ministry has achieved the recordbreaking milestone of constructing 37 kilometres highways per day in year 2020-21, which is unprecedented.

Minister for Road Transport & Highways and MSME, Shri Nitin Gadkari last evening felicitated the officials of M/o RTH and presented the letters of appreciation. The Minister said that this would not have been possible without dedication and

T

team work of the officials and other stakeholders. He said that these achievements are unprecedented and have no parallel in any other country in the world.

PLACED BELOW, IN BRIEF, ARE THE MAJOR ACHIEVEMENTS Over the last 7 years, length of National Highways has gone up by 50% from 91,287 km (as of April 2014) to 1,37,625 km (as on 20 March 2021); Total budgetary outlay increased by 5.5 times, from INR 33,414 Cr in Financial Year 2015 to INR 1,83,101 Cr in Financial Year 2022; Sanctioned amount has increased by 126% in Financial Year

2021 over Financial Year 2020 despite Covid-19 related impact.

Sanctioned length in kilometers has also increased by 9% in Financial Year 2021 over Financial Year 2020; Average annual project award (annual average award length) during Financial Year 2015 to Financial Year 2021 has increased by 85% compared to FY10 to FY14 Average annual construction (average annual construction length) during FY2015 to FY2021 has increased by 83% compared to FY2010 to FY2014 Cumulative cost of ongoing project works has increased by 54% at the end of Financial Year 2021 compared to Financial Year 2020 (as on March 31st)

Apr. 7th - 13th, 2021 Issue

Domestic Road Transportation Sector Rebounds, To Grow By 10-12% In FY2022; Outlook Revised To ‘Stable’ From ‘Negative’: ICRA

T

Chennai

Port Wings News Network he Indian logistics sector has witnessed a significant sequential recovery after experiencing severe disruption in Q1 FY2021, on account of the nation-wide lockdown. This had created demand-side and supply-side challenges which eased in subsequent months as economic activity recovered. As per ICRA note, as lockdownrelated restrictions eased and economic activity revived, the freight availability for logistics players also improved. Accordingly, many of the logistics companies reverted to pre-pandemic levels by end of Q2 FY2021 and started reporting Y-o-Y growth from Q3 FY2021, the same has continued into Q4 FY2021 as well. Freight rates also remained firm during this period.

According to Mr. Rohan Kanwar Gupta, Assistant Vice President & Sector Head, ICRA Ratings, “As the economy opened up and industrial, manufacturing, construction and consumption activities picked up pace, freight availability also improved, aiding recovery in the sector. Freight rates also held up in this period. As such, the pace of revenue contraction mellowed down significantly in Q2 FY2021, and reverted to growth trajectory in Q3 FY2021. This trend was also visible in E-way bill volumes, which reached prepandemic levels in September 2020 and posted Y-o-Y growth in all subsequent months. While freight volumes in Q3 FY2021 were supported by the historically strong festive period, the sector sustained its volume growth even after the season ended, giving comfort regarding the sustainability of the recovery.”

The recovery has also been visible across other modes of transportation as well. The rail freight traffic reported similar trends, reporting Y-o-Y growth of 5% and 10% in Q2 FY2021 and Q3 FY2021 respectively. The volumes thereafter have also held up, touching peak freight volumes in January 2021, resulting in 7% Y-o-Y growth during the fourth quarter so far. The seaways freight traffic, though growing slower than the other modes on account of supply-side/infrastructure constraints, has nevertheless, also reverted to growth trajectory from November 2020 onwards.

Overall, the aggregate revenues of ICRA’s sample of logistics companies recovered both sequentially and Y-o-Y in Q3 FY2021, growing 17% over Q3 FY2020 levels and 19% sequentially. The recovery was visible across the various modes of logistics activity.

Both Full Truck Load, Less than Truck Load and Supply Chain Management businesses benefited from the pickup in manufacturing activity and consumer demand. Furthermore, the express cargo segment reported healthy momentum, supported by strong traction from the e-commerce sector ever since the onset of the pandemic. However, express segment with dependence on document movement (especially air cargo) continues to remain impacted as offices are yet to open up completely.

During Q4 FY2021, the momentum has been maintained, with freight volumes continuing to report Y-o-Y growth trends and freight rates remaining firm. The growth trend

is expected to continue over the next couple of quarters, with the impact of a low base also starting to kick in.

With the encouraging trends visible so far, ICRA expects that the logistics sector would continue to pare back some of the volumes and revenues lost during the first quarter.

Accordingly, it has revised the revenue contraction estimate for the sector to 4-7% for FY2021, from 12-14% expected earlier.

With continued economic recovery, the FY2022 growth is likely to be healthy at 1012%. The recovery would continue to be led by rural positivity and pick-up in sectors like e-commerce, automotive and pharmaceutical, which have been faster than expected.

Nevertheless, the recent spike in covid-19 cases, and possibilities of further lockdowns being imposed to combat it, poses potential downside risks to these estimates.

In terms of profitability, logistics companies have also been able to arrest the earnings contraction to a significant extent despite lower revenues and higher fuel prices, supported by aggressive rationalisation of fixed overheads and cost-control initiatives.

Accordingly, the aggregate OPM of ICRA’s sample expanded by 60 bps on a Y-o-Y basis during Q3 FY2021, despite rising diesel prices.

However, as the impact of several cost-control initiatives like salary reduction, rental waivers etc. were temporary in nature; these levels of margins are not expected to be sustainable.

The problem is compounded by the continued firming up of diesel prices. Accordingly, the ratings agency expects the aggregate operating profit margins of its sample to be in the range of7.5-8.5% in FY2021, as against 8.8% in FY2020.

“While profitability had come under significant pressure in the first quarter due to subdued asset utilization and high fixed costs, the same has revived subsequently to a large extent. With cost-control measures undertaken and focus on working-capital management, the sector has been able to alleviate concerns on profitability to a large extent. Given that concerns on the business outlook as well as profitability of the sector has been alleviated majorly, ICRA has revised the outlook on the sector to Stable from Negative earlier,” concluded Mr. Gupta.

Growth over the medium-term is expected to gain momentum with anticipated increase in demand from segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals and industrial goods coupled with industry paradigm shift towards organised logistics players post GST and E-way bill implementation. Additionally, the sector is likely to witness some consolidation trends, given the rising pressure on viability of small fleet operators. Furthermore, multimodal offerings are likely to gain increased acceptance and traction going forward, given that players offering multimodal services had more flexibility and hence, were better placed to service their customers during the lockdown phase. Given these factors, and the relatively higher financial flexibility available to large organized players’ vis-à-vis their smaller counterparts, there is potential for increased formalization in the sector going forward.

PLI Scheme For Food Processing Sector Will Help Indian Brands Reach Global Shelves And Boost Economy: TPCI New Delhi Port Wings News Network pplauding the union cabinet nod to Production Linked Incentive Scheme for Food Processing Industry, Mohit Singla, Founder Chairman TPCI, in his statement said, “The scheme will go a long way and prove to be a milestone in Indian brands reaching global shelves quickly. It will boost the manufacturing activity in the food and beverage sector and also create huge employment opportunities for nearly 3 lakh people in next six year.”

Further Singla observed “The first four major food product segments viz. Ready

A

to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese. Innovative/ Organic products of SMEs, selected will help farmers get remunerative price and reduce wastage. The value added exports will get a leg up with expansion of processing capacity and branding abroad to incentivise emergence of strong Indian brands.”

“SME sector along with allied industry including innovative/ organic products in the food processing sector will also get a major push by enhancing the manufacturing capabilities and enhanced exports,” he added.

3

Mandaviya Flags Off New Hazira to Diu Cruise Route From Essar’s Ferry Terminal

E

Mumbai

Port Wings News Network ssar Bulk Terminal Ltd (EBTL), part of ports business of Essar, on 31 March said that a new cruise route from Hazira to Diu was launched from its passenger ferry terminal at Hazira Port, thus revolutionizing coastal transportation across the western coast of India and giving a boost to coastal tourism for the people of Gujarat.

Following the WHO guidelines for Covid-19 precautions, Shri Mansukh Mandaviya, Minister of State (Independent Charge) for Ports, Shipping and Waterways & Minister of State for Chemicals & Fertilizers, Government of India flagged off the Ferry service at passenger terminal in Hazira through virtual presence.

Commenting on the launch, Shri Mansukh Mandaviya, said “The development of cruise tourism has been the prime focus of the Government under the guidance Hon’ble Prime Minister Shri Narendra Modiji. In 2014, there were around 1.07 lakh cruise passengers in India per annum which was 4.63 lakh per annum in 2019-20. The cruise calls to Indian ports was 139 and 445 for these periods.

Under the Maritime Vision 2030, we are aiming for more than 350 cruise ships, 3000 plus cruise calls per annum, more than 3 cruise training academies and 5 million cruise passengers by 2030. We are taking all-round steps to create perfect ecosystem for cruise industry. The passenger ferry service has seen a giant leap with the development Hazira as a cruise tourism hub. This will also open up many opportunities for the tourism sector of Gujarat as well.”

“Since inception Essar has been involved in the development of Indian Maritime Sector and it continues to do so. We are delighted with this launch as the project is aligned to the Maritime India Vision 2030 of Ministry of Ports, Shipping and Waterways and paves way for accelerated growth of India’s Maritime Sector. We would like to thank the Union Ministry of Shipping and Government of Gujarat for their constant support in achieving this milestone.” said Mr. Prashant Ruia, Director, Essar Capital.

JAI SOFIA “Mumbai Maiden”, a state of the art cruise cum passenger ferry vessel with a capacity of 300 passengers will now sail in the inaugural route from Hazira to Diu. The vessel has all the facilities on board and provides a bouquet of services on board. The

ferry services are being operated by SSR Marine Services Private Ltd Speaking on the occasion Mr. Rajiv Agarwal, Managing Director – Essar Ports Ltd. said, “This is a big milestone for us. The Ferry Terminal was commissioned in record time and the ferry services through it are a significant addition to air, road, and rail-based connectivity along Indian coastline. It is part of our strategic plan to reduce congestion on roads, cut fuel consumption and limit air pollution. In future we would like to add more services and connections which will reduce the time of travel and at the same time minimize impact on environment. The new route to Diu will serve as an outlet for recreation for the people of Gujarat and boost the Cruise/ Ferry sector in Maritime Space”.

C o v i d - 1 9 pandemic had a detrimental impact on ferry and cruise operations across the globe. The pandemic has not only impacted the economy but hampered the travel. With the vaccination drive across the nation and nation coming out of almost a year of restricted travel.

As the world learns to live with the pandemic, EBTL has made arrangements to launch the ferry services and shall follow World Health Organization recommended guidelines to ensure that the ferry operations are done in a safe and healthy environment.

Spurred by the PM’s vision, Gujarat government gave its permission to EBTL to develop and operate a Passenger Ferry Terminal at Hazira, where the Company also operates a 50 MTPA dry bulk cargo terminal.

EBTL took charge of designing and constructing the facility, which includes both marine structures, like landing platform, passenger walkway and floating pontoon, as well as shore-based facilities, like a terminal building, cafeteria and vehicle parking area.

The project was completed in record time using Essar’s in-house expertise and resources. Essar’s own dredgers were used, for instance, to ensure the draft required for operating the terminal.

Essar Ports specializes in development and operations of Ports and Terminals for handling liquid, dry bulk, break bulk and general cargo.

It is one of the largest private sector port & terminal developer & operators in India by capacity and throughput. It has four operational terminals in India across Hazira and Salaya (in the state of Gujarat) on the west coast, and one each in Visakhapatnam and Paradip on the east coast. Current operational Port Terminal capacity in India is 110 MMTPA.

4 crew members test COVID positive in Paradip Port

T

Paradip

Port Wings News Network rouble is brewing along the Paradip Port as 14 crew members of the Vessel MV APJ Kais have been diagnosed with COVID-19. The matter came into the limelight after the ship’s captain informed the Paradeep Port authorities that some of the crew members had fever and cold, reports The New Indian Express.

Patients Hospitalised The 56000-ton coal-carrying ship arrived in Paradip from Tuticorin back on March 27.

The captain informed the authorities as soon as they arrived.

The Paradip Port Trust authorities didn’t waste any time and tested all the 28 crew members of the ship. 14 of them were found COVID positive and shifted to a private hospital in Bhubaneswar.

All the rest have been asked to remain in isolation on board the ship for at least 7 days.

According to Rajendra Narayan Panigrahi, a

Paradip Port Health Officer, all the hospitalised crew are asymptomatic and there’s no need for panic and fear as all preventive measures are in place.

The ship has been sanitized following all COVID protocols, he said, “Around 2,400 crew of various vessels have been screened and 1,000 ships inspected by the health team in the last one year”, he added.

Paradip’s COVID Protocol Speaking about the port’s COVID protocol, Dr Panigrahi said, “A help desk has been set up at Paradip to detect members of other ship crews who might have the infection.

Healthcare assistants will screen crew members of every ship on arrival”.

“Sanitisation inside prohibited areas, social distancing, thermal scanning, hand sanitisation, use of masks inside prohibited areas and offices have been strictly enforced.

All precautions are being taken and people should not fall prey to rumours and panic,” he added.

4

Apr. 7th - 13th, 2021 Issue

Paradip Port Handles “All Time Record” Cargo of 114.55 Million Metric Tonnes During FY 2020-21 Paradip

Port Wings News Network ith a record cargo handling of 114.55 MMT cargo in FY 20-21, Paradip Port Trust (PPT) achieved the coveted 100 Million Metric Tonnes (MMT) of cargo handling fourth consecutive year in row.

Briefing about the port’s annual performance to the media on 1 April, Shri Vinit Kumar, Chairman, PPT, said, “Despite cyclone Amphan and COVID-19 crisis, the port once again repeated the feat by crossing the 100 MMT mark in succession.”

The above achievement of highest ever Cargo handling 100 MMT of cargo again by PPT in the FY 20-21, is despite 2 of its existing berths are not available for handling of cargo, since these are under mechanization process.

For the above feat, Shri Vinit Kumar, Chairman, PPT congratulated Shri Mansukh Mandaviya, Minister of Ports, Shipping & Waterways, the Ministry, the user Industries, Stevedores, Steamer Agents, Trade Unions to have their continued faith on the ability of the Port to serve them. He congratulated the employees and officers of the Port for their continued commitment to serve the trade. Given an overview of the Port Chairman, PPT said that.

AN OVERVIEW: • The largest port in the country in terms of rated capacity @ 302 MMTPA. • The largest Dry Bulk handling port.

• The largest Coal handling port.

• The largest Iron Ore • The largest Coastal cargo handling port.

• The second largest port in terms of Traffic handled @ 100 MMTPA in 2020-21 • The highest OSBD (Output per Ship Berth Day) in bulk cargo i.e the most efficient.

• Having lowest marine charges.

• The largest Railway Terminal in the Country in terms of rakes handled.

TRAFFIC PERFORMANCE: Paradip Port Trust achieved all time traffic throughput of 114.55 million metric tonnes during the year 2020-21 as against the previous year’s traffic of 112.68 million metric tonnes exhibiting a growth of 1.65 %.

PERFORMANCE PARAMETER: During the year, the port performance parameter viz. Berthday out-put improved to 23,943 MT,

W

Pre-berthing detention has improved from 15.32 Hrs. in FY 19-20 to 6.20 Hrs. in FY 2020-21 and the Berth Occupancy is 74% as against 73% in the previous year.

The Port’s profit before tax stands at Rs.722Cr. which is an increase 6.02% over last fiscal which stood at Rs.681Cr. ACHIEVEMENTS Medical Department •Total 862 CoVID-19 ANTIGEN tests performed and Total positive198 •Treated 52 COVID-19 patients in Covid Care Centre •Treated around 180 COVID-19 Patients in Home Isolation as OPD Patients

E&M Department •IOHP posts record 188 rakes’ tippling in March, 2021 surpassing the previous monthly best of 182 rakes done in Feb., 2021.

•MCHP achieved another milestone by unloading Highest Nos of BOBRN Rakes carrying Thermal coal in a month i.e: 572 in the month of March-2021 surpassing the previous record of 570 in the month of January-2018 Projects under different stages of implementation: •Over Rs.2000 crores worth of projects for Port modernization are

to installed to avoid carryover of spilled material.

•2 nos. of Sewage Treatment Plants (STPs) of 2.5 MLD & 2 MLD capacity •12 mtr. Height & 2.9 km. long Net Barriers along Port Periphery •Green Belt Development •Tier-1 response facility for combating Oil Spill Pollution •2 New Sewerage Treatment Plants were operationalized in this financial year with a capacity of approximate 4.5 MLD and at a cost of Rs.21.82 crores.

•Plantation of 01 lakhs trees in and around the Port city.

•Roof top solar plant of about 265 KW has been installed.

has been inaugurated at PPT Trade Center Building. It is beautifully made in shortest possible time where asymptomatic and mild symptoms patients from the locality, can be treated. District Administration has appreciated our gesture of sparing the building.

•A 50 bedded Covid Care Center is functioning at the “Port Club”, for PPT employees.

•25000 Nose masks have been freely distributed among denizens of Paradip.

•As PPT tries to maintain operational efficiency, it is also striving to be efficient in keeping the port spick & span through routine sanitization and by maintaining social distance

•PPT Hospital has been declared as COVID-19 Immunization Centre.

Vaccination to 277 healthcare workers and support staffs have been performed •3951 Health and frontline workers and Senior citizens have been vaccinated for COVID-19.

Traffic Department •The Port has handled the highest ever cargo of 114.55 Million Metric Tonnes and improving its performance year-on-year.

•In the month of March’ 2021 the Port has also handled highest ever monthly total of 11.64 Million Metric Tonnes, as against the previous record of 11.17 Million Metric Tonnes in January’ 21 in the current fiscal.

•The port has also handled the highest ever Average Rakes per day i.e. 51.82 Nos. in February’ 2021.

Wherein, the Average of Incoming & Outgoing Rakes are 29.93 & 21.89 respectively.

•As EQ3 berth undergoes renovation, it received its first Baby Cape vessel MV ANGLO JESSICA, LOA - 255 mtrs. with 95,000 MT Iron Ore(con) cargo, on 5th November at 11.30 Hrs.

under implementation.

These are: -Mechanization of 03 existing EQ berths to 30 MMTPA capacity for handling thermal coal exports at an approximate cost of Rs.1440 crores.

-Development of a New Coal Import Berth of 10 MMTPA capacity at an approximate cost of Rs.650 crores.

•Further, development of Western Dock of capacity 25 MMTPA at a cost of Rs.3005 Crores has been recently approved by the Government of India and the project is now in tendering stage. On completion, this will transform the Port with facilities to handle Cape size vessels.

•The Haridaspur-Paradip railway line has recently been completed.

This is a major game changer and makes Paradip Port very competitive in international trading.

ENVIRONMENT: •Dry fog System in MCHP & 2 Nos. of Mobile Cannons Dust Suppression •2 nos. of Mechanised Road Sweeping Machines in Port Township •2 nos. of Wheel Washing Systems

CSR ACTIVITIES: The Port has been discharging its commitment to the society by taking up several CSR activities.

Paradip Port organised a six months free residential training programme for One Hundred Twenty (120) unemployed youth of Odisha through Central Institute of Plastic Engineering Technology (CIPET) Bhubaneswar at a cost of Rs. 72 lakh and all of them have been gainfully employed after the training.

In order to cater to needs of the denizens from peripheral areas of Paradip Port, free cataract operations have been conducted on 102 poor persons at PPT hospital in a year.

WELFARE MEASURES •Rs.8.00 Crores has been extended to PMCARES Fund for COVID-19.

• PPT is a glowing example of how the Central and State Govt. have put their combined efforts for meeting the Covid challenge. PPT Authority has signed MoU with Odisha Govt. for dedicated 65 bedded Covid Care Hospital, which is functional at Biju Yatri Niwas, Paradip. PPT has sanctioned Rs. 2.00 Cr. •A 200 bed COVID Care Center

norms. Dedicated teams regularly carry out disinfection activities inside port prohibited area besides ensuring mandatory use of face masks by all the personnel. PPT has also been undertaking disinfectant fumigation in the Port Township, PPT Administrative Building, Quarantine Centres and PPT Hospital by deploying Mist Cannons.

•During Cyclone “Amphan”, the Port took active steps to ensure uninterrupted availability of electricity and drinking water.

The food distribution among the evacuees at cyclone shelters, even found mention in the Prime Minister’s “Man ki Baat”.

•All efforts are made to beautify our Port Township including development of parks, creek side and walking paths and make Paradip as a walkers’ paradise.

The Chairman also expressed his gratitude to the Print and Electronic Media for their continued & forthcoming support and encouragement being extended for smooth functioning and development of the Port and look forward for such continued support, guidance and co-operation by all concerned in the days to come.

March Exports Show Whooping Double-Digit Growth: FIEO New Delhi Port Wings News Network eacting to March 2021 export figures, FIEO President, Mr Sharad Kumar Saraf said that the monthly exports showed a whooping double-digit growth of almost 58.50 percent clocking USD 34 billion compared to March 2020, showing not only impressive signs of further revival for the sector but for overall economy as well. This has been mainly on account of 28 out of 30 major product group of exports showing either a very impressive high positive growth starting with triple digit and almost all ending with a very high doubledigit growth defying all the odds during these difficult times.

FIEO President added that the exports of Other cereals, Oil meals, Iron ore, Jute mfg. Including floor

R

covering, Carpet, Electronic Goods, Gems and Jewellery, Engineering goods, Cereal preparations and miscellaneous processed item, Rice, Spices, Cotton yarn/fabrics/madeups, handloom products etc., Meat, dairy and poultry products, Ceramic products and glassware, Drugs and pharmaceuticals, Organic and Inorganic Chemicals, Plastic and linoleum, Handicrafts excl. Handmade carpet, Marine products, Manmade yarn/fabrics/made-ups etc., Mica, coal and other ores, minerals including process, Petroleum products, RMG of All Textiles, Coffee, Fruits and vegetables, Leather and leather manufactures, Tobacco, and Tea were the sectors, which contributed towards showing such a whooping performance by the exports sector during the month.

Such a whooping growth in

e x p o r t s during the month also helped in taking the merchandise exports to over USD 290 billion Mr Sharad Kumar Saraf during such FIEO President difficult and torrid times, which was well forecasted by FIEO said Mr Saraf.

FIEO Chief also reiterated that the support and help provided by the Government especially the Union Finance Minister and Union Commerce and Industry Minister during these challenging times has been commendable. Mr Saraf also thanked overall exporting community for achieving such figures even during these times. Further an

increase in March 2021 imports by about 53 percent to USD 48.12 billion compared to the same period during the previous fiscal led to a trade deficit of USD 14.11 billion, which is an increase of 41.40 percent during the month is definitely a concern, which should be looked into.

FIEO President urges the government to soon notify the RoDTEP rates to remove uncertainty from the minds of the trade and industry thereby forging new contracts with the foreigner buyers. Mr Saraf also reiterated that the government must address some of the key issues including

announcement of the new FTP soon after September, 2021, adequate availability of containers, release of the required funds for RoDTEP, MEIS and clarity on SEIS benefits, softening of freight charges, resolving risky exporters’ issues and continuance of seamless refund of IGST. Besides long pending demand for the creation of an Export Development Fund for marketing of Brand India products and various other infrastructure bottlenecks also needs to be looked into to bring back exports on the double-digit growth trajectory.

Further since we have momentum with us, we should aim at exports of USD 350 billion in this financial year so that we not only cover the lost ground but also help the economy to move to much needed double- digit growth, added President FIEO.

Apr. 7th - 13th, 2021 Issue

The Suez Canal Crisis Is Over, Now It’s Time To Add Up The Damages

T

Chennai

Port Wings News Network he Suez Canal may be open again, but the battle over damages from the waterway’s longest closure in almost half a century is just beginning. With cargoes delayed for weeks if not months, the blockage could unleash a flood of claims by everyone affected, from shipping lines to manufacturers and oil producers, reports Business Standard.

“The legal issues are so enormous,” said Alexis Cahalan, a partner at Norton White in Sydney, which specialises in transport law. “If you can imagine the variety of cargoes that are there — everything from oil, grain, consumer goods like refrigerators to perishable goods — that is where the enormity of the claims may not be known for a time.”

The giant Ever Given container ship was pried from the bank on Monday, and traffic through the canal — which connects the Mediterranean and the Red Sea — resumed soon after. The blockage began when the vessel slammed into the wall last Tuesday and was the canal’s longest since it was shut for eight years following the 1967 Six-Day War. The incident offered a reminder of the fragility of global trade infrastructure and threats to supply lines already stretched by the coronavirus pandemic.

The Ever Given, which moved north from the southern part of the canal where it ran aground to the Great Bitter Lake, is being inspected for damage. Those checks will determine whether the vessel can resume its scheduled service and what happens to the cargo, Taiwan’s Evergreen Line, the ship’s charterer, said in a statement. Egyptian authorities were desperate to get traffic flowing again through the waterway that’s a conduit for about 12 per cent of world trade and around 1 million barrels of oil a day.

A backlog of hundreds of ships built up.

There were 421 waiting to transit through the canal at 8:00 a.m. local time, according to Inchcape Shipping Services, a maritime services provider. The waterway usually handles around 50 a day, but will probably transit significantly more than that in the coming weeks.

“Coordinating the logistics of who gets to go through first and how that’s going to be

sorted out, I think the Egyptians have quite a job on their hands,” John Woben­smith, CEO of Genco Shipping & Trading , said on Tuesday in an interview with Bloomberg Television.

Leth Agencies, one of the main providers of Suez Canal crossing services, said 37 ships held up in the Great Bitter Lake exited the canal on Tuesday and 76 were scheduled to go over the rest of the day. South Korean shipper HMM said the HMM Gdansk, one of the world’s largest container vessels and which can carry 24,000 20-foot boxes, was scheduled to transit through the waterway Tuesday after being held up since last week.

It may take four days for traffic to return to normal, Suez Canal Authority Chairman Osama Rabie said at a Monday evening press conference. Earlier, a canal authority official said a week was more likely. Those assessments may be optimistic, according to Arthur Richier, an analyst at energyintelligence firm Vortexa.

Freight rates for the affected shipping routes are already rising due to the lower availability of tankers as some stay stuck and some take the longer route around the southern tip of Africa. Traveling via that route can add two weeks onto a vessel’s journey between Asia and Europe.

“It’s going to take them five or six days to clear up all the backlog of traffic,” Rustin Edwards, the head of fuel-oil procurement at shipping firm Euronav NV, said on a conference call on Tuesday. “You’re going to start seeing congestion at delivery ports when the ships that diverted and the ships that went through start arriving at the same destinations.

It’s going to cause a bit of a headache for a lot of container companies for the next couple of weeks.”

The blockage will reduce global reinsurers’ earnings, which have already been hit by the pandemic, winter storms in the US and flooding in Australia, according to Fitch Ratings. Prices for marine reinsurance will rise further as a consequence, it said. Fitch estimates losses may amount to hundreds of mill­ ions of euros. In a potential merry-goround of legal action, owners of the goods on board the Ever Given and other ships could seek compensation for delays from their insurers.

Shipping Sector Will Recover Fast; Container Freight Rates May Rise: Allcargo Logistics

T

Chennai

Port Wings News Network he Suez Canal blockage has finally been cleared with the massive container ship, Ever Given being refloated. The blockage resulted in over 200 ships being stalled or redirected. Many experts feel that the repercussions of the blockage will be felt for months because of delayed shipments and order backlogs.

Shashi Kiran Shetty, Group Chairman of Allcargo Logistics, is in the camp that feels the problem may not persist for long.

“The disruption due to this blockage will be over in a short time. I think the shipping world will recover pretty fast, I don’t see a major challenge going forward,” he said in an interview to CNBC-TV18.

“The impact is – about 2 percent of the container ships, fleet has been taken away temporarily. The trade between Asian and Europe, North America and East coast of United States and Canada are the ones which have experienced supply chain disruptions and about 400 ships are waiting,” he said.

“Now the movement of about 70-80 ships will happen every day,” he said, adding that some cargo has also been cleared by air.

He believes this blockage will have an impact on the container shortage and short

supply of ships will lead to increase in ocean freight which was showing a downward trend so far. “This will have some impact on the freight rates going up on the container side,” he stated.

On his company’s performance, Shetty said, “Our business has been fairly stable. We have improved our overall volume during the crisis. We expanded into new products which we launched on the full container load and also on the air freight – we have also launched air freight services out of China to US and Latin America. So all those contributed significantly. We are at pretty healthy stage right now.”

On synergies with Gati, he said, “Gati is on the right track. It is the most exciting sectors in the logistics market. Gati does express transportation, it is involved in warehousing management, it is also involved in air freight and last mile deliveries and pickups. We have been able to bring down the debt of the company, our contingent liability has come down substantially.”

“We are exploring (a bid for )Container Corporation of India (CONCOR),” he said.

CONCOR is among the companies listed for divestment by the government.

Shetty said Allcargo will delist from the bourses in FY22.

5

Overpowering COVID-19 and other challenges, JNPT handles 4.7 Million TEU’s in FY21 worked against all odds and helped the port retain its Port Wings News Network good performance in FY21. awaharlal Nehru Port Trust (JNPT) JNPT will continue to registered a throughput of over 4.7 million play an important role and twenty-foot equivalent units (TEUs) in contribute to the nation’s container handling as against 5.03 million economy by delivering its TEUs during FY 2020. The total traffic duties of an important part handled at JNPT during the Financial Year of the supply chain.

Our high-performance 2020-21 is 64.81 million tons as against 68.45 numbers are a validation of our continuous million tons in FY 2019-20. efforts to empower trade and make India a The total container traffic handled in foremost player in the global maritime sector”.

March 2021 stood at 527,792 TEUs, which Along with the operational excellence, is the highest container volume JNPT has been constantly working handled in a month, since towards facilitating ease in doing inception. The total traffic business for the Trade. Under handled at JNPT during the this JNPT took a major step by month of March-2021 is 7.33 facilitating new Inter Terminal million tons as against 5.93 Route connecting BMCT Terminal million tons in March-2020, with all the other four Container which is 23.53% higher than the Terminals of JNPT. Also during total traffic over the same month the month, railways undertook of last year. a successful trial run of double Major improvement in Avg. stacked dwarf container train from Turn-round Time of all vessels Mehsana (Gujarat) to JN Port. by 2.62% i.e from 29.42 hrs to Sanjay Sethi, IAS, During the financial year, the port 28.64 hrs as well as for container Chairman, JNPT also received the operational status vessels by 2.01% i.e from 25.82 hrs to 25.30 hrs from Pilot Boarding to De- for India’s First Port based Special Economic boarding in FY 2020-21 in comparison with Zone, JNPT SEZ. Also, JNPT completed the construction of a coastal berth with the FY 2019-20.

JNPT has five container terminals, taking capacity to handle 2.5 million tons of coastal an overview of the numbers terminal wise, cargo including liquid cargo.

APM Terminals Mumbai (GTI) handled 1.66 JNPT strives to further transform and million TEUs, DP World NSIGT with 0.78 upgrade the services to match the growing million TEUs, DP World NSICT with 0.75 demand & global trends of the maritime sector. million TEUs and the Port owned JNPCT with The Jawaharlal Nehru Port Trust (JNPT) 0.54 million TEUs. The Newly developed at Navi Mumbai is the biggest container BMCT handled around 0.93 million TEUs handling Port in India accounting for around during the FY 2021. NSICT and BMCTPL 52% of the total containerized cargo volume, have recorded 41.33% and 15.36% growth in across the major ports of India. Commissioned FY 2020-21 in comparison with FY 2019-20 on 26th May 1989, in less than three decades respectively. of its operations, JNPT has transformed from JNPT BPCL Liquid Cargo Terminal a bulk-cargo terminal to become the premier handled highest LPG during FY 2020-21 of container port in the country.

1.04 million tonnes from 70 vessels which is Currently JNPT operates five container 22.35% higher as compared previous highest terminals: the Jawaharlal Nehru Port Container of 0.85 million tonnes from 57 vessels in FY Terminal (JNPCT), the Nhava Sheva 2019-20. JNPT also handled 6,097 Rakes International Container Terminal (NSICT), the during FY 2020-21 and the Rail-Coefficient Gateway Terminals India Pvt. Ltd. (GTIPL), in FY 2020-21 (Apr. to Mar.) is 19.73% as compared to 16.14% in FY 2019-20 with Nhava Sheva International Gateway Terminal (NSIGT) and the newly commissioned Bharat 5,127 rakes.

Shri Sanjay Sethi, IAS, Chairman, JNPT Mumbai Container Terminals Private Limited said, “Despite the pandemic, JNPT along with (BMCTPL). The Port also has a Shallow its stakeholders stood up to this challenge, Water Berth for general cargo and another and put up a strong and spirited fight. In a Liquid Cargo Terminal which is managed by laudable display of team effort, everyone has BPCL-IOCL consortium Chennai

J

Suez Canal Authority To Seek Over $1bn Compensation For Losses

E

Mumbai

Port Wings News Network gypt’s Suez Canal Authority (SCA) said that it will seek over $1 billion in compensation for the losses caused by the massive container ship which had blocked the vital waterway since March 23, reports Business Standard.

The compensation for the losses and damages “will reach over $1 billion dollars” Xinhua news agency reported citing SCA chairman Osama Rabie as saying.

“This is the right of the state and we will not give it up.”

The 224,000-tonne Panama-flagged ship, Ever Given, was grounded on March 23 after it had veered off its course in a single-lane stretch of the canal during a sandstorm.

It was refloated six days later through the efforts of the SCA in cooperation with the Dutch firm Boskalis and its emergency response team SMIT Salvage hired by Ever Given’s owner.

The SCA chairman explained that the compensation demanded by the authority is not only for the financial losses caused by

six-day navigation suspension, but includes the expenses of using dredgers and tugboats and the physical damage caused during the salvage process.

Egypt resumed navigation in the canal several hours after the Ever Given was freed and re-floated on Monday, after which many of the 422 ships that have been kept waiting started to cross the waterway.

By Saturday at most, all 422 delayed ships will have crossed the Suez Canal, according to Rabie.

Linking the Mediterranean Sea with the Red Sea, the Suez Canal is a major lifeline for global sea trade since it allows ships to travel between Europe and South Asia without navigating around Africa, thereby reducing the sea voyage distance between Europe and India by about 7,000 km. Some 12 per cent of the world trade volume passes through the man-made canal. At least 18,840 ships passed through the canal last year. The Suez Canal provides one of Egypt’s main sources of income, alongside tourism and remittances from expatriates. Revenue from the waterway reached $5.6 billion last year.

6

Apr. 7th - 13th, 2021 Issue

7

Surge In COVID-19 Cases May Curtail The Rally In Crude Tanker Stocks

C

Chennai

Port Wings News Network rude tanker shipping stocks have been trending upwards from the start of February, which has led to an 18.2% YTD gain in the Drewry crude tanker index.

The index comprehensively outperformed the three key US market indices – while Dow Jones Industrial Average (DJIA) and S&P 500 gained 6.6% and 4.1% respectively over the same period, Nasdaq Composite (0.7%) remained stable as the gains in the first half of February were offset by the steady decline in the latter half of the month with the index remaining range-bound, thereafter. All constituent stocks of the Drewry crude tanker index registered double-digit gains since the beginning of the year irrespective of their fleet composition and chartering mix.

Teekay Tankers (TNK) surged 30.8% followed

by Tsakos Energy Navigation (TNP) with a gain of 24.5% and Frontline (FRO) with a gain of 22.7%. DHT Holdings (DHT) improved by 16.6% while Nordic American Tankers (NAT) increased by 14.6% and Euronav (EURN) registered a gain of 12.9%, says a Drewry report.

What is driving tanker stocks?

Recent reports indicate that global COVID-19 infections rose for the fourth week in a row, led by rising cases in the Americas and Europe. The five countries that are reporting the highest number of new cases are Brazil, the US, India, France and Italy with North America and Europe accounting for nearly 83% of all active cases. Several European countries are extending or reintroducing lockdown measures as a third wave of the pandemic sweeps across the continent.

Mobility restrictions of varying degrees are in force across the US to contain the surge in new COVID-19 infections. These restrictions are putting pressure on the recovery in oil consumption and thus demand for tankers.

Time charter rates are on the decline across vessel classes with 1-year TC rate for a five-year-old VLCC sliding by 2.8% since December 2020 whereas the rate for a fiveyear-old Suezmax and a similar Aframax declined by 5.9% and 9.4% respectively in the past three months. Second-hand asset prices have largely remained stable since the beginning of the year. VLCC spot TCE rates on the Middle East-China (TD3C) route plunged from USD 17,850pd on 31 December 2020 to USD 1,370pd on 25 March 2021. Meanwhile, spot TCE rates for a Suezmax vessel on West Africa-Cont (TD20) jumped to USD 15,500pd on 25 March 2021 from USD 3,300pd on 31 December 2020 and Aframax vessel earnings on Baltic-Cont (TD17) soared from USD 2,975pd to USD 20,475pd over the same period. However, the improvement in spot TCE of Suezmax and Aframax vessels is due to the recent surge in their earnings primarily on account of the temporary tightening in tonnage availability on key loading ports rather than fundamental changes in tanker market dynamics. These rates are expected to decline in the coming months. So, what drove the recent rally in crude tanker stocks?

The rollout of various COVID-19 vaccines in the past few months gives hope of containing the spread of the virus that will lead to the resumption of several economic and commercial activities and drive economic growth in 2021. Recent market reports indicate that the global economy is expected to expand by 4.0% in 2021 after a contraction of 4.2% in the previous year. Increased economic activity will drive crude oil consumption with demand expected to return to the pre-COVID-19 level

in 1H22. The expectation of an increase in crude oil demand and its seaborne trade over the next one year is the underlying factor that supported the rally in stocks of crude tanker companies in the past three months.

Strict compliance to production cut and demand recovery to support crude oil prices The departure from the usual strategy of fixing oil production levels for six months to the provision for monthly review in January 2021 to decide the next month’s crude oil production by OPEC+ members is a more proactive and flexible approach by the cartel to ensure market rebalancing. A steady recovery in global crude oil consumption supported by the rollout of vaccines and easing lockdown restrictions in addition to strict compliance to the production cut by OPEC+ producers supported the uptrend in crude oil prices. Saudi Arabia’s production cut of additional 1 mbpd beyond its quota in the OPEC+ deal further supported the rally in crude oil prices.

We believe OPEC+ is in no hurry to loosen its oil taps and will remain proactive in adjusting market supply over the next year to ensure that the oil market remains stable.

Impact of Suez Canal blockage on crude tanker market On 23 March, a 200,000-dwt containership Ever Given got stuck at the Suez Canal, blocking it completely. It took almost a week for the stranded ship to be freed and traffic to resume at the canal. Nearly 800 kbpd of Middle Eastern crude oil destined for the US and Europe transits through the canal and around 700 kbpd of crude oil from the North Sea and western Russia destined for the Asian market is transported through the canal mostly on Suezmaxes and Aframaxes. We expect the traffic backlog to be cleared in about a week with no material impact on freight rates of crude carriers as tonnage demand is weak during spring refinery maintenance and there is ample tonnage availability in the Mediterranean as well as Arabian Gulf.

Is the rally in crude tanker stocks sustainable?

Crude tanker stocks were on the run over the past three months despite a decline in vessel earnings and Baltic Forward Freight Agreements (FFAs) for 2021 and 1Q22.

Optimism for demand recovery on the back of the rollout of several COVID-19 vaccines led to a sharp hike in VLCC TCE FFAs for 2Q22 from USD -28,872pd on 31 December 2020 to USD 22,223pd on 24 March 2021.

The prospect of medium- term recovery in the tanker market seems to have played a key role in the recent rally in tanker shipping stocks. However, concerns of a third wave of COVID-19 infections in several European countries and the rise in new cases in the US, India and Brazil could curtail the pace of recovery in crude oil consumption and tanker demand.

Conclusion Crude tanker shipping stocks have comprehensively outperformed key market indices in the past three months with the hope of recovery in demand in 1H22 on the back of the rollout of several COVID-19 vaccines.

However, mobility restrictions of varying degrees on account of a third wave of the virus infections in several European economies and rising cases in the US, India and Brazil could curtail the pace of recovery in the tanker market. A lot will depend on the pace and extent of the vaccination drive against the pandemic in the next few quarters. A decline in infections and easing restrictions are the only factors that could help sustain the gains and support stock prices in 2021.

CBIC Notifies New System For Filing Bill Of Entry For Importers

T

Chennai

Port Wings News Network he Central Board of Indirect Taxes and Customs (CBIC) has notified a new system for filing Bills of Entry (BE) for import. Tax officials feel the new system will help in a quicker clearance of goods, reports Business Line.

Detailed provisions were made in the Finance Bill 2021. After approval by the Parliament and assented by the President, this has become an Act. Now, after consultation with trades, CBIC has notified new regulations, which prescribes different time limit for filing BEs. BE is a legal document filed by importers or customs clearance agents on or before the arrival of imported goods. It is submitted to the Customs authority for clearance procedure.

According to the new regulations, if a consignment comes from Bangladesh, the Maldives, Myanmar, Pakistan or Sri Lanka via the sea route, the BE is required to be filed latest by the end of the day of arrival. For all other countries, importers will be required to file by the end of day preceding the day of arrival at the sea port. In case a consignment arrives at an airport or a land customs station (LCS), the BE will be required to be submitted by the end of the day of the arrival.

The CBIC has clarified that the existing provision that a BE may be presented up to 30 days prior to the expected arrival of the aircraft or vessel or vehicle carrying the imported goods continues. Thus, with certain

exceptions, as notified, the BE can now be filed any time from 30 days prior to the expected arrival up to the end of the day preceding the day of such arrival, the board said.

“Advance-filing will help in better risk management, besides ascertaining whether goods need to be scanned. Also, the importer can pay the duty in advance,” said a senior CBIC official. The board has also urged importers to file the BE well in advance and definitely by the time-lines. Non-adherence of the time-lines will attract late charges, the board said.

The board has also clarified that a timeline will be considered where the good has originally been loaded and from where it has been transhipped. For example, in respect of goods consigned from Sri Lanka by a Sri Lankan exporter, the BE is to be filed latest by the end of the day of the arrival, whereas in respect of goods consigned from Hong Kong, but merely transhipped through Sri Lanka, the BE is required to be filed latest by the end of day preceding the day of the arrival of the vessel.

The board has noted concerns from importers regarding non-availability of Master Bill of Landing( MBL)/Master Airway Bill (MAWB) within the prescribed timelimits leading to delay in filing advance BE. Accordingly, it has been decided to do away with this requirement. Here, only the reference to House Bill of Lading (HBL)/House Airway Bill (HAWB) would be sufficient at the time of advance filing.

Tech Solutions Are Plugging In To Help Ease Widening Congestion At Global Ports

A

Chennai

Port Wings News Network s shipping’s port congestion crisis widens, tech-players are hoping to capitalise on calls for improved visibility across container supply chains.

SeaIntelligence’s Lars Jensen noted the lack of any real-time overview of global bottlenecks, as pockets of congestion spring up from Auckland to Singapore to Los Angeles.

“Instead, it is drip-wise in terms of each individual port,” he explained. “Sometimes you can only get the info from a carrier calling at the port/terminal, whereas the port provides no info. Other times it is the reverse, and at times it is neither.”

Indeed, last week The Loadstar reported on Drewry’s analysis of the congestion. This suggested better visibility of port capacity and productivity would allow for earlier cargo re-routing and schedule adjustments. And the consultant said it was developing a port efficiency monitoring service which would provide early indication of potential yard congestion.

Likewise, visibility platform Project44 noted how the industry’s congestion woes were making headlines in the financial press, for example, when Nike reported its North America revenues were down 11%, due to shipment delays of over three weeks.

Project44 said its recent acquisition of data-provider Ocean Insights would allow it to to help importers manage intermodal connectivity at congested gateways, and the company recently launched Port Intel, an online service that provides subscribers with summaries of

congestion at specific ports.

Other tech-players are tackling the gridlock with improved communication and planning tools for carriers and terminal operators.

Portchain, for example, provides AI-powered cloud-based solutions for berth utilisation and fleet planning.

Thor Thorup, Portchain’s CCO, told The Loadstar increased information on berthing capacity enabled carriers to increase their planning horizon and identify schedule disruptions earlier, which gives time to make proactive decisions.

“Conversely, when carriers share more accurate arrival times and move counts to terminals, terminals are able to optimise their berth and crane utilisation better, so they don’t need to make last-minute adjustments,” he added.

Portchain already boasts Hapag-Lloyd and the port of Tanjung Pelepas as customers, and recently added Russia’s Global Ports.

“Using Portchain, Global Ports’ customers will be able to track information about schedules, vessel arrivals and handling, including berth numbers and the start and end of cargo operations, all in real time,” Mr Thorup explained.

Furthermore, he said, as well as providing visibility on berth capacity and arrival times, predicting missing or inaccurate information through machine learning, and better planning decisions through AI optimisation could also help to reduce congestion.

“It is surprisingly quick to implement these three areas in operations, and we are able to bring a terminal fully live with Portchain in four to six weeks,” he added.

Visit

www.portwings.in for Latest News

Apr. 7th - 13th, 2021 Issue

Indian Crew On Suez Ship; All Safe: Firm Chennai

A

Port Wings News Network ll members of the crew on board the containership Ever Given, which is wedged diagonally in the Suez Canal in Egypt since March 23, are Indians, the maritime solutions provider in charge of technical management of the vessel said on Saturday, according to a report in The Indian Express.

“All 25 crew are safe and accounted for and they remain in good health and spirits. All crew are Indian nationals and remain onboard. They are working closely with all parties involved to re-float the vessel. The hard work and tireless professionalism of the Master and crew is greatly appreciated,” Bernhard Schulte Shipmanagement (BSM) said in a statement.

The mammoth 400 m-long, 200,000-tonne vessel owned by Shoei Kisen of Japan and operated by the Taiwanese firm Evergreen Marine, ran aground reportedly due to “strong winds” and a sandstorm.

Efforts to dislodge and refloat the Ever Given had not been successful until Sunday.

The containership, one of the world’s largest, has almost entirely blocked the narrow channel, a crucial passage for maritime trade between Asia and Europe and one of the world’s busiest trade routes.

Some 300 ships with an estimated $10 billion worth of goods remain stranded on both sides of the blockage.

Director General of Shipping Amitabh Kumar said since the crew on board the ship are safe, the intervention of the Directorate General of Shipping has not been

sought. The impact of the incident will mostly be on trade, Kumar said.

“The crew is safe and sound. Only the ship is stuck. They are trying to work on removing the vessel. There should not be any problem as far as the crew is concerned. Seafarers are used to long voyages,” he said.

Abhijeet Sangle, working president of the All India Seafarers and General Workers Union said they had received information from BSM that the crew were safe, and going about performing their duties.

“We were informed by BSM that the 25 Indians on board are from different states like Tamil Nadu, Andhra Pradesh… Three are from Mumbai, and some from North India,” Sangle told The Indian Express. He said that no family member of any of the seafarers had reached out for assistance since they were looked after on board. His union, Sangle said, was monitoring the situation.

In its statement, BSM said significant progress had been made on Friday night at the stern of the ship, and the vessel’s rudder had been released from the sediment.

Eleven tugs had been at work throughout Saturday, alongside ongoing dredging operations, by which sand and mud continue to be removed from the port side of the vessel’s bow.

Two more tugs, one registered in the Netherlands and the other in Italy, were expected join the efforts to assist in the re-floating of the Ever Given, the company said.

According to BSM, at the time of the incident, the Ever Given was headed northward through the canal en route to Rotterdam, Netherlands, with two canal pilots on board.

“Initial investigations suggest the vessel grounded due to strong wind… There have been no reports of pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding,” BSM said.

To deal with the possibility of bunching of vessels at ports in western India — especially JNPT, Mundra and Hazira — once traffic resumes at the Suez Canal, the Ministry of Ports, Shipping and Waterways and Director General of Shipping have advised these ports to prepare a strategy to berth multiple vessels simultaneously.

Coastal shipping operators have been asked to keep feeder vessels ready to carry containers around the Indian coast if needed. Box operators have been asked to ensure there is no shortage of containers for the EXIM trade. The situation in the Suez and its impact on India is being monitored constantly, Kumar said.

Shipping industry sources said the blockage of one of the key global maritime commercial arteries was expected to greatly impact trade and shipping around the world. Unless the channel is opened up soon, ships will have to sail an extra seven-eight days to go all the way around Africa, which will raise costs sharply.

Prominent container shipping operator A.P. Møller-Mærsk informed its customers on March 24 that seven of its container vessels were affected by the incident, of which four were within the Suez Canal system, and the rest were waiting to enter the passage. “The incident continues to create long tailbacks on the waterway stopping vessels from passing and causing delays,” Mærsk said.

International Seaways And Diamond S Shipping To Merge Chennai

I

Port Wings News Network nternational Seaways (INSW) and Diamond S Shipping are to merge in an all stock deal to create the second largest listed tanker company in the US. The company’s boards have approved the deal under which INSW and Diamond S shareholders will own approximately 55.75% and 44.25% of the combined company, respectively.

The merger of Diamond S with INSW would create the second largest US-listed tanker company by vessel count and the third largest by deadweight.

On a pro forma basis, the combined company will have 100 vessels of 11m dwt, shipping revenues of over $1bn over 2,200 employees, and an enterprise value of approximately $2bn.

The fleet comprises VLCCs, suezmaxes, LR1/panamax and MR tankers and the two companies aim to realise estimated annual cost synergies in excess of $23m and revenue synergies, of $9m which are expected to be fully realised within 2022.

The company’s boards have

approved the deal under which INSW and Diamond S shareholders will own approximately 55.75% and 44.25% of the combined company, respectively.

The merger of Diamond S with INSW would create the second largest US-listed tanker company by vessel count and the third largest by deadweight.

Related: International Seaways orders three LNG dual-fuel VLCCs for Shell charters On a pro forma basis, the combined company will have 100 vessels of 11m dwt, shipping revenues of over $1bn over 2,200 employees, and an enterprise value of approximately $2bn.

The fleet comprises VLCCs, suezmaxes, LR1/panamax and MR tankers and the two companies aim to realise estimated annual cost synergies in excess of $23m and revenue synergies, of $9m which are expected to be fully realised within 2022.

Douglas Wheat, Lois Zabrocky and Jeffrey Pribor will continue to serve as the Chairman of the Board of Directors, CEO and CFO of INSW, respectively, and the current CEO of Diamond S, Craig

Stevenson Jr., will join the Board of Directors of INSW, and also act as a special advisor to the CEO for a 6-month period to ensure a smooth transition.

“We are excited to enter into this transformational transaction and create an industry bellwether,” said Zabrocky. “By bringing together two leading US-based diversified tanker owners, we expect to deliver a number of compelling strategic and financial benefits to the stakeholders and customers of both companies.”

“We believe the combined company is well positioned to capitalize on opportunities in both the current market environment and well into the future,” said D Wheat.

Stevenson Jr. of Diamond S, commented, “By combining our fleet and capabilities with INSW’s world-class operations, we believe the merger will significantly benefit each company’s stakeholders as market conditions improve… As a long-time proponent of industry consolidation, I believe this transaction gives the combined company the scale and diversity necessary to hold the status as a leader in the tanker markets for years to come.”

7

NEWS - BITS Sanmar To Deliver The 5th Robert Allan Design Tugboat To Italian Operator

Sanmar Shipyards will deliver the second very high performance ASD RAstar 2800 tug, designed with a sponsoned hull form, to long-established Italian operator Rimorchiatori Napoletani S.R.L. in May 2021. She will be the exact sister of BAIA delivered back in May 2020 to Napoli by Sanmar’s own delivery crew.

Sanmar has previously delivered two 50 tonnes BP RAmparts 2200, one 75 tonnes BP RAmparts 2400SX and another 80 tonnes BP RAstar 2800 to Rimorchiatori Napoletani fleet.

The tug Sanmar Terminal XXIX’s unique hull shape, designed by Canadian naval architects Robert Allan Ltd and proven in both model and full-scale testing and seakeeping performance, means roll motions and accelerations are less than half those of comparable sized ‘standard’ tug hulls. The escort forces are enhanced by the effects of the sponson as well as the foil-shaped escort skegs fitted.

The 28.2m LOA x 12.6m moulded beam x 5.3m extreme draft Sanmar Terminal XXIX is a Robert Allan Ltd RAstar 2800 powered by two Caterpillar 3516 C HD main engines, each producing 2525kW at 1,800 rev/min. It has Kongsberg US255 FP thrusters and 2800mm diameter propellers, providing a speed ahead of 14 knots. She will have the Kongsberg escort forward towing winch and aft winch onboard same as BAIA has.

PETRONAS’ Upstream Operations In Myanmar Declares Force Majeure On Its Yetagun Field

PC Myanmar (Hong Kong) Limited (PCML), a subsidiary of PETRONAS, has declared Force Majeure (FM) on its Yetagun field on 1 April 2021 due to depletion of gas production at the field, located in the Andaman Sea, offshore Myanmar, in Blocks M12, M13 and M14.

The decision was made following challenges in the wells deliverability that resulted in the production rate dropping below the technical threshold of the offshore gas processing plant. PCML has temporarily ceased production at the Yetagun field until further notice.

PCML Country Head, Liau Min Hoe said: “Prior to the cessation of production, Yetagun field was producing well below the technical turndown rate of its facilities. There has been a drastic decline in production level due to subsurface challenges in the field since January 2021 and it has further deteriorated recently.

“Continuing to produce at a low rate would impose significant risks to the integrity of our assets and the safety of our people. As a responsible operator, we had to temporarily cease production and declare force majeure. We have put in place an intervention plan to mitigate the matter, and have informed the host authority, our partners and gas buyer of our decision,” he added.

Bureau Veritas joins the Science Based Targets initiative Bureau Veritas has joined the Science Based Targets initiative, a group of leading companies who are demonstrating the highest level of ambition on climate and paving the way to a net-zero future. As a member of this group, Bureau Veritas commits to aligning climate targets to limit the global temperature rise to 1.5°C above pre-industrial levels.

Science-based targets provide companies with a clearly defined pathway to future-proof growth by specifying how much and how quickly they need to reduce their greenhouse gas emissions. It is a collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC).

Bureau Veritas will ensure that its low-carbon transformation is aligned with climate science. Its carbon emission reduction targets for 2025 are currently being analyzed by the Science Based Targets initiative.

As a “Business Ambition for 1.5° C” signatory, Bureau Veritas is part of the list of companies taking action on the Science Based Targets initiative. Additionally, it is part of the group of visionary leaders within the UN Global Compact. Bureau Veritas is also recognized as committed to setting science-based targets on CDP and We Mean Business.

CUSTOMS EXCHANGE RATES Notification No.40/2021 (N.T.) ALL RATES PER UNIT

FOREIGN CURRENCY Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc Turkish Lira UAE Dirham US Dollar Japanese Yen (100) Korean Won (100)

with effect from 2nd Apr. 2021

RATE (INR) Import Export 57.10 200.70 59.25 11.35 11.80 87.65 9.60 250.45 52.60 8.75 102.70 20.80 20.20 55.50 5.10 8.55 79.35 9.05 20.60 74.15 67.55 6.70

54.70 188.35 57.15 11.00 11.35 84.55 9.25 234.75 50.25 8.45 99.25 19.50 18.95 53.60 4.80 8.25 76.25 8.55 19.35 72.45 65.05 6.30

We are not responsible for any mistake. ALL RATES ARE PROVISIONAL. The rates in these column are only meant for guidance.

8

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2021-2023 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

Indian Crew Of Grounded Suez Canal Ship Appreciated For Hard Work And Professionalism Chennai

A

Port Wings News Network s the Suez Canal grounded ship Ever Given commences on its journey, concern about its all Indian crew was put to rest. As per officials in Egypt, the 25 Indian crew are in good health and are commencing on the journey to Rotterdam, according to indiatimes.com The crew won’t be replaced as of now and will sail to Rotterdam if it is deemed fit after full inspection.

“They (crew) are safe and in good health… Their hard work and tireless professionalism are greatly appreciated”, said the ship management company Bernhard Schulte Shipmanagement (BSM).

Directorate General of shipping Amitabh Kumar reiterated this when he said that the crew remains unharmed.

“As there is no harm to the Indian crew, there is no reason for us to intervene right now. As per the International Maritime Organisation (IMO), any vessel that has met with an accident has to be investigated as per its convention. This is called ‘casualty investigation’.

The same will be conducted on this vessel. It will be a fact-finding

inquiry. The report is normally submitted by the flag state. If we receive any complaint from the company that the inquiry is not impartial, then of course we will intervene. But so far we have not received any such complaint”, said Kumar.

Abhijeet Sangle, working president of the All India Seafarers and General Workers Union, said “BSM, which has its branch in Andheri (Mumbai), informed us that of the 25 crew members, three are from Mumbai, some are from Tamil Nadu, Andhra Pradesh and some from north India. However, the File Photo company did not disclose the names of the captain or other crew for security reasons.”

The company told us that a full inspection of the ship, including its hull and engine, and its cargo is currently on. If the ship is found fit, then the vessel with the same crew will move to its next destination to Rotterdam without any further delay”, he added.

Sangle revealed that BSM will check the digital video recorder of the ship’s passing to determine the cause of the accident.

India is a reliable source of “They will find out who’s at marine manpower and supplies a fault; the ship captain or the canal significant number of seafarers to pilot, who helped steer the big the maritime industry. vessel through the narrow canal. As “On average, India sends around per rules, if a captain is held liable, 2.4 lakh seafarers every year. Of he or she, the duty officer in charge, them, 2.1 lakh sea-farers work on and the respective able seamen foreign ships and 30,000 on Indian will be signed off and may not be ships, said the DG Shipping. enrolled again. But it’s too early to Casualty Investigation Underway say anything,” Sangle added.

Apr. 7th - 13th, 2021 Issue

Italy Approves Decree To Keep Ships Out Of Venice Lagoon Chennai

I

Port Wings News Network taly’s government has ruled that large cruise ships and container vessels must not pass close to Venice’s historic center and should instead dock in a different location to preserve the famed lagoon. File Photo A decree approved late on Wednesday called for public consultations on building a terminal outside the lagoon where passenger vessels over 40,000 tons and container ships can berth without passing in front of Saint Mark’s square.

In the meantime, large boats must dock at the industrial Marghera Port, far from the Grand Canal.

“Anyone who has visited Venice in recent years has been shocked to see these ships, hundreds of meters long and as tall as apartment buildings, passing through such fragile places,” Culture Minister Dario Franceschini said on 1 April.

Venice residents have been urging governments for years to ban large ships from the lagoon and concerns were heightened after the Costa Concordia, a 114,500 tonne liner, sank off the Tuscan island of Giglio

in 2012, with the loss of 32 lives.

In 2019, a cruise ship collided with a dock and a tourist boat in Venice as it was approaching a passenger terminal on the Giudecca canal, injuring four people.

The government said in a statement that it wanted to “reconcile the needs to protect the artistic, cultural and environmental heritage of Venice and its lagoon with those related to cruise activity and goods traffic”.

It was not immediately clear if this latest attempt at protecting Venice from large cruise ships would succeed.

In 2013, the then government banned vessels of more than 96,000 gross tonnes from crossing the Giudecca canal, but a local court later overturned the ruling.

In 2017 another government tried again, telling big vessels to dock at Marghera. Once again many tour operators managed to navigate around the order.

Before the coronavirus pandemic, which has ravaged the cruise industry, Venice was among Italy’s main tourist venues drawing over 25 million visitors a year.

Maersk Suspends Spot Bookings From Wide Range Of Export Markets

W

26

YEARS

Akil Enterprises (Exim Logistics Agency)

• Clearing & Forwarding Services • Sea, Air Freight Services • Break Bulk Cargo Handling • Container Movements • Supply Chain Managements • Warehousing Arrangements No.72/149, Linghi Chetty Street, 1st Floor, Mannady, Chennai - 600 001. India Ph: 0091-44-42166381 / 25260381 Email: aeclear@gmail.com

26

YEARS

Chennai

Port Wings News Network hile the blockage of the Suez Canal by the 20,000 teu containership Ever Given was cleared after six days Maersk expects to see impact across the global supply chain with significantly reduced capacity, as well as equipment shortages, which have dogged the sector since the second half of last year.

“We have earlier communicated that even when reopened, the blockage of the Suez Canal would have ripple effects on global supply chains for weeks to come,” Mearsk said in a customer advisory.

However, expecting a Ssignificant er v t in capacity loss ice T ren Diffe over rulymultiple weeks, depending on market dynamics, we have decided to temporarily cease short term bookings placed via Spot, as well as short term contracts this week and in the immediate future, in these geographical services.” Spot is Maersk’s online booking platform for spot container shipments.

The suspension of spot and short-term contracts affects all exports out of Asia which Maersk said was due to expected equipment shortages.

It also covers exports out of West Central Asia to Europe and North Africa, North America East Coast, West Africa via Mediterranean, and Latin America via Mediterranean.

The suspension impacts exports out of Europe to Asia, Middle East and Indian SubContinent, and Oceania.

It covers North American exports to Middle East and Indian Sub-Continent, and East Africa, and exports from Latin America from East Coast South America to Middle East and Indian Sub-Continent and Asia via Mediterranean, and from Central America and West Coast South America to Middle East and Indian Sub-Continent.

The suspension also impacts exports from East Africa to Europe, and West Africa to Asia, Middle East and Indian Sub-Continent via Mediterranean.

File Photo

“We want to assure you that this is only temporary so that we may quickly move existing laden cargo and empty containers to the areas they are most needed,” Maersk stated.

The closure of Suez Canal and build up of traffic waiting to transit the key waterway came at a time when the container shipping was already severely stretched by a surge in demand in the second half of 2020 that has continued into this year. This has resulted in severe port congestion on the US West Coast, and at other major ports, and compounded an already existing shortage of containers in key export markets.

Port Wings - Maritime Exim Weekly Newspaper : Published by K.Sivakumar on behalf of Universal Media Associates, Old No.72, New No.149, 1st Floor, Srinivasa Complex, Linghi Street, Mannady, Chennai - 600 001. And Printed by V.Meganathan at Web Kingdom, No.115, Jani John Khan Road, Royapettah, Chennai – 600014. Editor: K.Sivakumar.